Form 4: National Research Corp Director Stephen H. Lockhart Acquires Stock Options

Director Stephen H. Lockhart acquired 10,906 stock options in National Research Corp on May 8, 2024, as part of an annual grant.

Summary

• Stephen H. Lockhart, a director at National Research Corporation, acquired 10,906 stock options on May 8, 2024.
• The options were granted under the Issuer's 2004 Non-Employee Director Stock Plan.
• The exercise price of the options is $29.76.
• The options will vest and become exercisable on the date immediately preceding the date of the Issuer's next annual shareholder meeting, subject to certain exceptions provided in the Plan.
• Following the transaction, Lockhart directly owns 10,906 derivative securities.

Sentiment

Score: 7

Explanation: The document indicates a standard director compensation practice, suggesting stability and alignment of interests. It's a routine filing, so the sentiment is neutral to slightly positive.

Positives

• The grant of stock options aligns the director's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the director.

Future Outlook

The options will vest and become exercisable on the date immediately preceding the date of the Issuer's next annual shareholder meeting, subject to certain exceptions provided in the Plan.

Industry Context

Granting stock options to directors is a common practice to incentivize them and align their interests with the company's long-term performance. This is a standard component of director compensation packages in publicly traded companies.

Comparison to Industry Standards

• Director compensation packages, including stock options, vary widely across industries and company sizes.
• Comparing the size and terms of these options to those granted by similar-sized companies in the market research industry would provide a benchmark for assessing their competitiveness and appropriateness.

Stakeholder Impact

• The stock option grant aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• Employees may view the grant as a positive sign of the company's commitment to its leadership.

Key Dates